India and the Monsoon Effect

The benefits of a good monsoon season flood through India’s agriculture-dependent economy—and this year the potential is greater than most says Goldman Sachs Research’s Tim Moe, given political shifts that could come with the 2019 general election cycle. Moe expects an incremental bias toward more spending on the rural economy, which combined with a good monsoon could drive growth in both India’s economy and key sectors of its equity market.

India is probably one of the foremost examples where the capriciousness of the weather cycle can detract from the structural growth potential that we’re seeing.